Don't add to our pain, Gordon

Businesses are pleading with Gordon Brown to cancel a 2p increase in fuel duty in October as hauliers prepare to blockade London on Tuesday.

The Federation of Small Businesses says the Treasury has the scope to cut fuel duty by 9p without affecting public finances because of increased tax receipts from energy firms thanks to the oil price spike. Without government intervention, the FSB believes the sharp rise in oil prices will spark a sharp increase in business insolvencies. It is calling for the government to act now rather than wait and see whether oil prices unwind. Such a move would, however, be strongly opposed by environmentalists.

Shadow chancellor George Osborne has put pressure on the Prime Minister by saying that, if he were in charge, he would not rule out postponing the increase in duty. But a Treasury spokesman said: 'The immediate priority is to encourage oil-producing countries in Opec to increase output to help bring down fuel prices.'